5 Rules for Trading Cryptocurrencies:
1. Rapid increases and slow decreases indicate accumulation. A rapid rise followed by a slow decline suggests that the market makers are accumulating assets in preparation for the next upward movement.
2. Rapid decreases and slow increases indicate selling. A rapid fall followed by a slow rise implies that the market makers are gradually selling off, and the market is about to enter a downward cycle.
3. Don't sell when there's high volume at the top; if there's no volume at the top, make a quick exit. High trading volume at the peak may indicate further increases; however, if trading volume shrinks at the peak, it suggests insufficient upward momentum, and one should exit quickly.
4. Don't buy when there's high volume at the bottom; sustained high volume may indicate a buying opportunity, but this needs to be observed. Sustained high volume indicates continuous capital inflow, making it worth considering a purchase.
5. Trading cryptocurrencies is about trading emotions; consensus equals trading volume. Market sentiment determines price fluctuations, and trading volume reflects market consensus and investor behavior!
